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Robust supply chain design with suppliers as system integrators: an aerospace case study.

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Title: Robust supply chain design with suppliers as system integrators: an aerospace case study.
Authors: Falcão e Cunha, Nuno1,2 (AUTHOR) nuno.cunha@fe.up.pt, Gan, Thiam-Soon3 (AUTHOR), Curcio, Eduardo2 (AUTHOR), Amorim, Pedro1,2 (AUTHOR), Almada-Lobo, Bernardo1,2 (AUTHOR), Grunow, Martin3 (AUTHOR)
Source: International Journal of Production Research. Aug2023, Vol. 61 Issue 15, p5244-5265. 22p. 2 Diagrams, 2 Charts, 10 Graphs.
Subjects: Integrators, Supply chains, Robust optimization, Systems design, Original equipment manufacturers, Systems integrators
Abstract: Original Equipment Manufacturers (OEMs) have sought new supply chain paradigms that allowed them to focus on core activities, i.e. overall product design and commercialisation. This pursuit led to partnerships with a new generation of tier-1 strategic suppliers acting as integrators. Integrators are not only responsible for system supply, but also for system design. However, critical integrators were not able to live up to their new roles, which led to costly delays in development and production. These failures highlight the ineptitude of current risk management practices employed by OEMs. To support OEMs in implementing a more differentiated and suitable approach to the use of integrators, this paper proposes a mathematical programming model for Supply Chain Design (SCD). Instead of looking at the introduction of integrators as a dichotomous decision, the model suggests the optimal number of integrators, i.e. systems, and individual part suppliers. We propose new measures for integration risk, which build upon current risk assessment practices. Robust optimisation is used to study the effect of uncertainty over baseline risk values. All approaches were tested using both randomly generated instances and real data from a large European OEM in the aerospace industry. [ABSTRACT FROM AUTHOR]
Copyright of International Journal of Production Research is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Robust supply chain design with suppliers as system integrators: an aerospace case study.
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  Data: <searchLink fieldCode="AR" term="%22Falcão+e+Cunha%2C+Nuno%22">Falcão e Cunha, Nuno</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<i> nuno.cunha@fe.up.pt</i><br /><searchLink fieldCode="AR" term="%22Gan%2C+Thiam-Soon%22">Gan, Thiam-Soon</searchLink><relatesTo>3</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Curcio%2C+Eduardo%22">Curcio, Eduardo</searchLink><relatesTo>2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Amorim%2C+Pedro%22">Amorim, Pedro</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Almada-Lobo%2C+Bernardo%22">Almada-Lobo, Bernardo</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Grunow%2C+Martin%22">Grunow, Martin</searchLink><relatesTo>3</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22International+Journal+of+Production+Research%22">International Journal of Production Research</searchLink>. Aug2023, Vol. 61 Issue 15, p5244-5265. 22p. 2 Diagrams, 2 Charts, 10 Graphs.
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  Data: <searchLink fieldCode="DE" term="%22Integrators%22">Integrators</searchLink><br /><searchLink fieldCode="DE" term="%22Supply+chains%22">Supply chains</searchLink><br /><searchLink fieldCode="DE" term="%22Robust+optimization%22">Robust optimization</searchLink><br /><searchLink fieldCode="DE" term="%22Systems+design%22">Systems design</searchLink><br /><searchLink fieldCode="DE" term="%22Original+equipment+manufacturers%22">Original equipment manufacturers</searchLink><br /><searchLink fieldCode="DE" term="%22Systems+integrators%22">Systems integrators</searchLink>
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  Data: Original Equipment Manufacturers (OEMs) have sought new supply chain paradigms that allowed them to focus on core activities, i.e. overall product design and commercialisation. This pursuit led to partnerships with a new generation of tier-1 strategic suppliers acting as integrators. Integrators are not only responsible for system supply, but also for system design. However, critical integrators were not able to live up to their new roles, which led to costly delays in development and production. These failures highlight the ineptitude of current risk management practices employed by OEMs. To support OEMs in implementing a more differentiated and suitable approach to the use of integrators, this paper proposes a mathematical programming model for Supply Chain Design (SCD). Instead of looking at the introduction of integrators as a dichotomous decision, the model suggests the optimal number of integrators, i.e. systems, and individual part suppliers. We propose new measures for integration risk, which build upon current risk assessment practices. Robust optimisation is used to study the effect of uncertainty over baseline risk values. All approaches were tested using both randomly generated instances and real data from a large European OEM in the aerospace industry. [ABSTRACT FROM AUTHOR]
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  Label:
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  Data: <i>Copyright of International Journal of Production Research is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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        Value: 10.1080/00207543.2022.2099769
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      – Code: eng
        Text: English
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        PageCount: 22
        StartPage: 5244
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      – SubjectFull: Integrators
        Type: general
      – SubjectFull: Supply chains
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      – SubjectFull: Robust optimization
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      – SubjectFull: Systems design
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      – SubjectFull: Original equipment manufacturers
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      – SubjectFull: Systems integrators
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      – TitleFull: Robust supply chain design with suppliers as system integrators: an aerospace case study.
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            NameFull: Falcão e Cunha, Nuno
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            NameFull: Gan, Thiam-Soon
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              Text: Aug2023
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              Y: 2023
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